1) Setting of loan interest rate of ONEROOT DEX;

Adjusted according to the supply and demand of funds, the lender puts the funds into the smart contract address of the fund pool, and the lender mortgages the funds to lend funds from the fund pool. With the change in the utilization rate of the fund pool, the interest rate is dynamically adjusted, and the interest rate is used to incentivize lenders and borrowers. For this reason, the use of a non-linear function helps to reduce the chance of lending the fund pool.

2) Setting of liquidation price;

The liquidation price is calculated based on the mortgage rate when liquidation is executed in each market. The mortgage rate can be checked in the contract. Currently, when the mortgage rate reaches 110%, liquidation will start; for example, I added 1 ETH as collateral and opened 4 times leverage to do more ETH in the ETH-DAI market. The opening price is 300 DAI/ETH. At this time, I have a position of 4 ETH and a debt of 900 DAI;

The mortgage rate at this time is: (4 ETH * 300 DAI) / 900 DAI = 133%

The liquidation mortgage rate is 110%, then the liquidation price is: (900 DAI * 110%) / 4 ETH = 247.50 DAI/ETH


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